ROSLYN, N.Y., September 20, 2016 /PRNewswire/ - Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company" or "us"), a non-asset based global shipping and freight logistic integrated solution provider, today announced its financial and operating results for the year ended June 30, 2016. The Company has also provided extensive industry information on its Form 10-K filed this afternoon, and management encourages investors to review the document for both background on Sino-Global's business and history as well as strategy for the coming fiscal year.
Management Comments
Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, "Throughout the year, we continued to execute on a business strategy aimed toward expanding our revenue base and leveraging our considerable industry experience as a non-asset based logistics provider. We continued to diversify from our legacy shipping agency operation in fiscal 2016, while streamlining our operations and improving our free cash flow. In March, we announced the expansion of Sino-Global in the United States market through the formation of a new U.S. based subsidiary, located in L.A., and on May 3rd announced we had entered a memorandum of understanding from Yaxin International Co., Ltd., which represents our first customer agreement for the west coast operation. We also recently announced the development of a mobile application that will provide a full-service logistics platform between the US and China to short-haul trucking in the US. After speaking with several existing and potential customers, we believe that Sino-Global's experience in providing logistics service and solutions, coupled with our long term relationships with major shipping carriers, provide a competitive advantage to build a mobile-based platform. We have a strong capital position, and are optimistic about the prospects for the Company."
Fiscal Year 2016 Operating Highlights
(all comparisons to the prior year)
Expectations for Fiscal 2017
Fiscal Year 2016 Financial Review
The following table presents summary information by segment for the years ended June 30, 2016 and 2015:
For the Year Ended June 30, 2016 |
For the Year Ended June 30, 2015 |
|||||||||||||||||||||||
Shipping |
Shipping |
|||||||||||||||||||||||
Agency and |
Inland |
Agency and |
Inland |
|||||||||||||||||||||
Ship |
Shipping and |
Transportation |
Ship |
Shipping and |
Transportation |
|||||||||||||||||||
Management |
Chartering |
Management |
Management |
Chartering |
Management |
|||||||||||||||||||
Services |
Services |
Services |
Consolidated |
Services |
Services |
Services |
Consolidated |
|||||||||||||||||
Revenues |
$ |
2,507,800 |
$ |
462,218 |
$ |
4,340,522 |
$ |
7,310,540 |
$ |
6,185,653 |
$ |
349,125 |
$ |
4,785,850 |
$ |
11,320,628 |
||||||||
Cost of revenues |
$ |
2,175,109 |
212,510 |
$ |
1,350,370 |
$ |
3,737,989 |
$ |
4,998,030 |
182,650 |
$ |
755,603 |
$ |
5,936,283 |
||||||||||
Gross profit |
$ |
332,691 |
249,708 |
$ |
2,990,152 |
$ |
3,572,551 |
$ |
1,187,623 |
166,475 |
$ |
4,030,247 |
$ |
5,384,345 |
||||||||||
Gross margin |
13.27% |
54.02% |
68.89% |
48.87% |
19.20% |
47.68% |
84.21% |
47.56% |
||||||||||||||||
Balance Sheet Information
Stock Repurchase Plan Update
On October 11, 2015, the Board of Directors of Sino-Global approved a stock repurchase program, in accordance with the retirement method, authorizing the repurchase of up to $100,000 of its common stock during the quarter ending December 31, 2015. Thereafter the Company may repurchase an aggregate value of shares per quarter equal to 10% to 15% of Sino-Global's quarterly net income for which the most recent quarterly or annual report has been filed. The plan is set to expire October 20, 2016.
In summary, the Company had repurchased a total of 50,306 common shares at an average stock price of $0.89 per share as of June 30, 2016.
About Sino-Global Shipping America, Ltd.
Sino-Global Shipping America, Ltd., a Virginia corporation, is a non-asset based global shipping and freight logistic integrated solution provider. Sino-Global provides tailored solutions and value added services to its shipping and freight customers to drive effectiveness and control in related links throughout entire logistic chain. Additional information about Sino-Global can be found on the Company's corporate website at www.sino-global.net. The Company routinely posts important information on its website.
Forward Looking Statements
No statement made in this press release should be interpreted as an offer to purchase any security. Such an offer can only be made in accordance with the Securities Act of 1933, as amended, and applicable state securities laws. Any statements contained in this release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties as identified in Sino-Global's filings with the Securities and Exchange Commission. Actual results, events or performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as the date hereof. Sino-Global undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contact Information
The Equity Group Inc.
Adam Prior
Senior Vice-President
(212)-836-9606 / aprior@equityny.com
SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
||||||||
For the Years Ended June 30, |
||||||||
2016 |
2015 |
|||||||
Net revenues |
$ |
7,310,540 |
$ |
11,320,628 |
||||
Cost of revenues |
(3,737,989) |
(5,936,283) |
||||||
Gross profit |
3,572,551 |
5,384,345 |
||||||
General and administrative expenses |
(4,346,159) |
(4,304,329) |
||||||
Selling expenses |
(475,619) |
(63,219) |
||||||
Total operating expenses |
(4,821,778) |
(4,367,548) |
||||||
Operating income (loss) |
(1,249,227) |
1,016,797 |
||||||
Financial income (expense), net |
(247,530) |
14,200 |
||||||
Other income, net |
7,828 |
40,146 |
||||||
Total other income (expense) |
(239,702) |
54,346 |
||||||
Net income (loss) before provision for income taxes |
(1,488,929) |
1,071,143 |
||||||
Income tax expense |
(812,593) |
(427,221) |
||||||
Net income (loss) |
(2,301,522) |
643,922 |
||||||
Net loss attributable to non-controlling interest |
(335,593) |
(73,468) |
||||||
Net income (loss) attributable to Sino-Global Shipping America, Ltd. |
$ |
(1,965,929) |
$ |
717,390 |
||||
Comprehensive income (loss) |
||||||||
Net income (loss) |
$ |
(2,301,522) |
$ |
643,922 |
||||
Foreign currency translation (loss) gain |
(134,155) |
124,375 |
||||||
Comprehensive income (loss) |
(2,435,677) |
768,297 |
||||||
Less: Comprehensive loss attributable to non-controlling interest |
(97,409) |
(15,907) |
||||||
Comprehensive income (loss) attributable to Sino-Global Shipping America Ltd. |
$ |
(2,338,268) |
$ |
784,204 |
||||
Earnings (deficit) per share |
||||||||
-Basic and diluted |
$ |
(0.23) |
$ |
0.11 |
||||
Weighted average number of common shares used in computation |
||||||||
-Basic and diluted |
8,651,606 |
6,443,096 |
||||||
SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES CONSOLIDATED BALANCE SHEETS |
||||||||
June 30, |
||||||||
2016 |
2015 |
|||||||
Assets |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ |
1,385,994 |
$ |
730,322 |
||||
Advances to suppliers |
2,192,910 |
50,975 |
||||||
Accounts receivable, less allowance for doubtful accounts of $207,028 and $477,240 as of June 30, 2016 and 2015, respectively |
2,333,024 |
3,082,219 |
||||||
Other receivables, less allowance for doubtful accounts of $145,186 and $241,604 as of June 30, 2016 and 2015, respectively |
290,907 |
191,972 |
||||||
Prepaid expense and other current assets |
826,631 |
1,265,609 |
||||||
Due from related parties |
1,622,519 |
2,784,591 |
||||||
Total Current Assets |
8,651,985 |
8,105,688 |
||||||
Property and equipment, net |
176,367 |
214,003 |
||||||
Prepaid expenses |
178,982 |
436,351 |
||||||
Other long-term assets |
46,810 |
2,773,908 |
||||||
Deferred tax assets |
- |
280,600 |
||||||
Total Assets |
$ |
9,054,144 |
$ |
11,810,550 |
||||
Liabilities and Equity |
||||||||
Current Liabilities |
||||||||
Advances from customers |
$ |
24,373 |
$ |
126,201 |
||||
Accounts payable |
489,490 |
691,588 |
||||||
Taxes payable |
1,637,197 |
996,648 |
||||||
Accrued expenses and other current liabilities |
286,322 |
99,607 |
||||||
Total Current Liabilities |
2,437,382 |
1,914,044 |
||||||
Total Liabilities |
2,437,382 |
1,914,044 |
||||||
Commitments and Contingency |
||||||||
Equity |
||||||||
Preferred stock, 2,000,000 shares authorized, no par value, none issued. |
- |
- |
||||||
Common stock, 50,000,000 shares authorized, no par value; 8,456,032 and 7,996,032 shares issued as of June 30, 2016 and 2015; 8,280,535 and 7,870,841 outstanding as of June 30, 2016 and 2015, respectively |
15,500,391 |
16,303,327 |
||||||
Additional paid-in capital |
1,144,842 |
1,144,842 |
||||||
Treasury stock, at cost - 175,497 and 125,191 shares as of June 30, 2016 and 2015, respectively |
(417,538) |
(372,527) |
||||||
Accumulated deficit |
(4,518,799) |
(2,552,870) |
||||||
Accumulated other comprehensive income (loss) |
(280,907) |
91,432 |
||||||
Unearned stock-based compensation |
(3,880) |
(7,760) |
||||||
Total Sino-Global Shipping America Ltd. Stockholders' Equity |
11,424,109 |
14,606,444 |
||||||
Non-controlling Interest |
(4,807,347) |
(4,709,938) |
||||||
Total Equity |
6,616,762 |
9,896,506 |
||||||
Total Liabilities and Equity |
$ |
9,054,144 |
$ |
11,810,550 |
||||
SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
For the Years Ended June 30, |
||||||||
2016 |
2015 |
|||||||
Operating Activities |
||||||||
Net income (loss) |
$ |
(2,301,522) |
$ |
643,922 |
||||
Adjustment to reconcile net income (loss) to net cash used in operating activities |
||||||||
Stock-based compensation to management |
349,800 |
- |
||||||
Amortization of stock-based compensation to consultants |
1,327,780 |
512,269 |
||||||
Amortization of stock option expense |
3,880 |
3,880 |
||||||
Depreciation and amortization |
59,508 |
165,088 |
||||||
Provision of doubtful accounts |
132,915 |
33,382 |
||||||
Deferred tax provision (benefit) |
280,600 |
(116,700) |
||||||
Loss on disposition of property and equipment |
- |
(20,693) |
||||||
Changes in assets and liabilities |
||||||||
Increase in advances to suppliers |
(2,141,935) |
(42,493) |
||||||
Decrease (increase) in accounts receivable |
616,280 |
(2,633,716) |
||||||
Increase in other receivables |
(98,935) |
(17,566) |
||||||
Increase in prepaid expense |
(4,228) |
(296,750) |
||||||
Increase in other assets |
(30,600) |
(20,943) |
||||||
Decrease (increase) in due from related parties |
1,162,072 |
(724,425) |
||||||
(Decrease) increase in advances from customers |
(101,828) |
37,724 |
||||||
(Decrease) increase in accounts payable |
(202,098) |
292,832 |
||||||
Increase in taxes payable |
640,549 |
789,188 |
||||||
Increase (decrease) in accrued expenses and other current liabilities |
186,714 |
(403,097) |
||||||
Net cash used in operating activities |
(121,048) |
(1,798,098) |
||||||
Investing Activities |
||||||||
Acquisitions of property and equipment |
(31,659) |
(84,102) |
||||||
Proceeds from sale of property and equipment |
- |
80,661 |
||||||
Cash collected from the termination of vessel acquisition |
326,035 |
|||||||
Collection of short-term loan from related party |
- |
1,113,599 |
||||||
Acquisitions of vessel |
- |
(516,229) |
||||||
Net cash provided by investing activities |
294,376 |
593,929 |
||||||
Financing Activities |
||||||||
Proceeds from issuance of common stock, net |
691,600 |
967,820 |
||||||
Purchase of common stock |
(45,011) |
|||||||
Net cash provided by financing activities |
646,589 |
967,820 |
||||||
Effect of exchange rate fluctuations on cash and cash equivalents |
(164,245) |
64,140 |
||||||
Net increase (decrease) in cash and cash equivalents |
655,672 |
(172,209) |
||||||
Cash and cash equivalents at beginning of year |
730,322 |
902,531 |
||||||
Cash and cash equivalents at end of year |
$ |
1,385,994 |
$ |
730,322 |
||||
Supplemental information |
||||||||
Income taxes paid |
$ |
23,286 |
$ |
8,104 |
||||
Non-cash transactions of operating activities: |
||||||||
Common stock issued for vessel acquisition |
$ |
- |
$ |
2,220,000 |
||||
Return of common stock issued for vessel acquisition |
$ |
(2,220,000) |
$ |
- |
||||
Common stock issued for stock-based compensation to consultants |
$ |
435,000 |
$ |
1,419,950 |
||||
Common stock issued for LSM acquisition |
$ |
- |
$ |
33,400 |
||||
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